Labour Law Rejig

Besides the dreadful
threat of the COVID-19 global pandemic, India is also facing an excruciating
labour crisis. Millions of workers in the country have been rendered unemployed
and without food, shelter and financial security. The loss of livelihood is
further aggravated by the recent suspension of labour laws by some state
governments.

Over the past week,
several states governments have introduced controversial reform measures in
view of the economic turmoil caused by the COVID-19 lockdown. Though aimed at
helping industries recoup, these reforms have come under fire for being
extremely exploitative as they give employers the power to hire and fire at
will, extend working hours, prohibit migrant workers from going back home, determine
their wages, and reduce liabilities in terms of providing employee benefits.

Some of the states
that made these changes include Uttar Pradesh, Madhya Pradesh, Gujarat,
Rajasthan, Punjab and Odisha. In Uttar Pradesh, the application of most labour
laws has been summarily suspended for the next three years.

Labour reform has
been a long-standing issue, but it still remains unaddressed. Initiatives and
implementation steps related to it are majorly at a standstill, with a lot of apprehension
attached to the non-agreement among the tripartition of employer, employees and
the government.

Now, with several
state governments’ move to change/dilute labour laws in an undemocratic and
exploitative manner, it is clear that the governments are taking away workers’
dignity and their right to a decent work culture.

As a founder member
of the International Labour Organisation (ILO), and a country that has ratified
several fundamental conventions of the ILO, India’s long engagement with the
ILO has been noticed at a global level. However, the current labour law reform
efforts in the name of recovery of economy during coronavirus period raises worries
of a possible return to an era of slavery.

Bharatiya Mazdoor
Sangh national president C.K. Saji Narayanan explains that the proposed
amendments will lead to “a law of the jungle.” Labour economist K.R. Shyam
Sundar has observed this reform increases the possibility of labour exploitation.

Since labour falls in
the Concurrent List of the Constitution of India, both the central and the state
governments are competent to enact legislation for catering to different
aspects of labour, viz. occupational health, safety, employment, fixation and
review of minimum wages, mode of payment of wages, payment of compensation to
workmen who suffer injuries as result of accident or causing death or
disablement, bonded labour, contractual labour, women and child labour, and so
on.

In addition to this,
both central and state governments also retain the duty to facilitate the
implementation of labour laws. In this context, the law needs to be reviewed
from time to time and its amendment is an ongoing process in tune with the
emerging needs of the economy, such as attaining higher levels of productivity,
increasing employment opportunities, and securing more investments both from
within the country and abroad.

There is an
assumption that the damage on economy due to the lockdown can be overcome by attracting
investments from companies that are shifting base from China. The arrival of
these companies in India would provide more employment opportunities in the
country. With the relaxation of existing labour laws, the efforts are to woo
businesses and place India at a position where it can take advantage of the
disruptions in the global supply chain.

Actually this
interpretation is a myth and still needs to be proved. It also sends a
conflicting signal across the nation. The timing, manner and implementation of
these reform efforts give the impression that the states are using this
opportunity to empower industries. However, what is overlooked is that this
move takes away from workers their basic rights, such as eight hours of working
time, freedom of association, welfare and empowerment facilities.

The reasons are many for
saying that the timing of present labour reforms could not have been more wrong.
India is already a country where inequalities and deprivations abound and
citizens are weak and vulnerable. The 2019 Human Development Index (HDI),
released by the United Nations Development Programme (UNDP), ranked India 129th
out of 189 countries. This truth has been unfolding on the streets of our
country during the lockdown, with migrant workers walking back to their homes
while battling loss of livelihood, hunger, financial crunch, exhaustion and
fatigue. A report by the Times of India, dated May 12, described the situation
thus: “Thousands upon thousands of migrant workers, children in arms, stumbling
along, are stretched out in unending lines. Almost every truck that passes by
is a refuge on wheels. Exhausted people sleep on the roadside. Children cry in
hunger. Mothers cast anguished glances at vehicles that won’t stop.”

As per a May 10
report by The Wire, “378 people had died since the lockdown was imposed due to
reasons other than the disease. Of them, 69 people died in rail or road
accidents while walking to their homes.” Data compiled by researchers Thejesh
G.N., Kanika Sharma and Aman shows that, as of May 14, 58 people died of
starvation and financial distress, 29 of exhaustion (walking and standing in
queues), and 89 of road or train accidents due to walking/migration.

Another reason why
the labour reforms are being called untimely is because it comes at such a time
when industries can easily procure workforce for lower rates by exploiting the
current crisis migrants are facing. Those who are in dire need of money will
take up employment, even at far lesser wages, in order to keep themselves and their
families fed and clothed.

India has been seeing
a steady increase in the unemployment rate, and in 2019, for the first time in the
country’s history, employment collapsed by nine million in six years. This has
got even worse during the lockdown crisis, as one out of four employed Indians
have lost their jobs in the past two months, as per a report by the Centre for
Monitoring Indian Economy. The World Bank reported in April that the lockdown
impacted 40 lakh migrant workers. These workers are already going back to their
home states due to lack of jobs. A huge number of international migrants have also
started to come back to India. As a result, today in India, the availability of
low-cost labourers has increased tremendously. In the new labour market
scenario, these workers will be further exploited.

The third reason for
calling this reform untimely is that it comes at a time when both central and
state governments are focussing their efforts on stopping the spread of coronavirus.
In such a dire situation, addressing issues of migrants and other informal
workers in the country may be overlooked or carried out in a haste manner,
thereby making the reform agenda vague and bogus.

From the time of
outbreak of COVID-19 and following the lockdown announcements, a question has
arose with regards to the unsatisfactory labour reforms – Is it life or
livelihood that should be prioritized? Both are important and both are
interdependent. As of now, India is experiencing the problem of overwhelming
unemployment and high labour supply while the demand for workers is much less. This
has led to extreme levels of exhaustion and vulnerability among the people and
the lack of proper protection of their rights through the constitutional framework
only adds to the worries.

All in all, the
reform initiatives by the states are indications of taking away workers’ protection
and making low-cost labour underestimate even the Minimum Wages Act .The fact
that the government does not seem to care about the workers’ right to work and life
is explicit from the move to extend working hours. The government could have
instead used this opportunity to provide employment to more people under extra
shifts.

The suspension of
labour laws, especially the Industrial Disputes Acts and the Industrial Employment
(Standing Order) Act, will also hinder resolution of disputes between the
employer and the employees. Additionally, the decision to suspend the Trade
Unions Act is an attempt to crush freedom of workers’ associations that back decent
standard of work.

Moreover, the recent
proposals do not have room for a legal framework that supports informal workers,
who, at 419 million, are about 90% of the country’s total 465 million workers,
according to estimates by the Periodic Labour Force Survey of 2017-18.

From early on, most
labour laws in India have been implemented poorly and half-mindedly by state governments.
Studies show this is due to lack of proper participation by all stakeholders in
the process of labour implementations. When viewed against this background, the
recent labour law reforms have been introduced in an autocratic and undemocratic
manner.

The effectiveness of
current labour law reforms is a major question also because it does not eliminate
the informal character of workers. In countries like Denmark, Norway and
Sweden, workers’ rights are protected through a well-planned safety net of newer
employment opportunities, health and social security system, re-training
mechanisms and proper documentation of their work and income. These are steps that
our country can also adopt. Let’s not forget studies have sufficiently highlighted
that one of the most critical essentials of economic activity is the welfare
and security of the workforce.

Furthermore, World
Bank surveys have shown that labour law is only the fifth-biggest problem
employers face in India. That means governments should first address other key
issues like infrastructure, lack of skilled employees, resource flow and good governance,
etc., in order to ensure ease of business and economic activity before setting
their eyes on reforming labour laws. Or else, India will be at the top in the
modern slavery system index.

(The writer is the founder Director of
Workers’ India Federation. He can be reached at: josevattakuzhy2017@gmail.com)